FAMILY INCOME AND EXPENDITURE

ABSTRACT

A family budget is a plan that is drawn by members of a family consisting of

the total income that the family gets every month and also the total expenditure

that the family incurs every month. Although the people responsible for making this

budget are the parents, all the other family members should be aware of what the

budget entails. This is because it will affect the different aspects of their lives in the

respective place and time. Aim of the research was to know how effective the

family budgeting in the rural areas of Edathua Gramapanachayat. The

participants of the study were twenty families. The participants were given a

questionnaire consisted of 22 statements which had both personal and general

questions. It was found that majority of the familys inability to maintain a family

budget and to spend wisely.

Every government has a budget, central government or state government.

Municipality has a budget. Each and every organization or institution has a budget.

Family is the basic unit of society. Family should have a budget for the smooth

management of its income and expenditure. In the family budget there should be

provision for wise management of income. It should be prepared well in advance.

The proper financial management within the family and maintaining the financial

health is essential to be well supplied with economical resources when in need.

Family budgeting helps one prepares for emergencies, sheds light on bad spending,

and ensures wise spending. Improper management of wealth sources will raise

possible risks in life and will create redundant situation in life. Financial

management is not tough concept, if approached well, remained adhered to the

budget and decisions constantly. This study helped to understand the income and

expenditure of 20 families at Pandankary, Edathua, in Alappuzha district. The

study also helped to analyze the income and expenditure of each family and also

helped in the comparison of income and expenditure of each family.

OBJECTIVES OF THE STUDY

To find out monthly income of families in Pandankary

To find out monthly expenditure of families in Pandankary

To compare the income & expenditure of each families

To compare the expenditure in families of highest and lowest income

The investigator adopted survey method for the study. Survey method is the

technique of gathering data by asking questions to people who are thought to have

desired information. Survey method renders a broader range of information on

socio-economic characteristics, opinions, and motives from the selected

population. Moreover, the data is found reliable in this research method.

The participants of the study were twenty families at Pandankary ward of Edathua

Gramapanchayat, in the district of Alappuzha, Kerala, India.

 The participants were given a questionnaire consisted of 22 statements

which had both personal and general questions. The investigator prepared

questionnaire and conducted an appropriate administration of survey by visiting

the selected twenty families.

The investigator prepared a questionnaire, selected the sample families,

visited them and collected required details from the head of the families.

The investigator used analysis and logical reasoning to examine each

component of the data provided and used pie diagrams because they are an

efficient and easy to read way to present data percentages. The study investigator

found that majority of the familys inability to maintain a family budget and to

spend wisely. The study also brought to light that the major share of expense is on

food and related expenses. Education expenses found to be comparatively higher

than other associated expenses. Moreover, people were well aware of keeping the

travel expenses to the lowest possible level. Incidental expenses and other expense

found to be very low. The study helped to understand the importance of preparing

family budget. The study revealed that gold expenditure was surprisingly high.

The current study demonstrates the importance of family budgeting. People

are not serious in preparing a budget. In India, most of the states have studied the

importance of family budgeting and its influence over the welfare of the whole

family. Ernest Engels found that as income increases, the percentage expenditure

on necessaries of life increases and vice versa. Moreover, percentage expenditure

on luxurious and other recreational aspects increases with an increase in income

and decreases when income decreases.

As limitations, it was found that the target group consists of heads of the

family and they did not reveal the budget details properly such as budget for gold

purchase and fixed deposits. The target group was extended to a vast area. Limited

time was also another factor. There should be mass awareness programmers to

make them understand the importance of having a family budget. Local

administration like municipality, Gramapanchayat should conduct workshop or

seminar for the head of the families in helping them to manage their income and

expenditure. They should be given simple target oriented budget training. It can be

done in gramasabba. The study can be conducted to a large sample. A more

comprehensive study with longer duration with more questions can be conducted.

CONCLUSION

Family budgeting is an interesting topic. Many of the respondents expressed

their practical intricacy for spending wisely. The chief share of expense is on food

and related expenses. Education expenses found to be comparatively higher than

other associated expenses. Moreover, people were well aware of keeping the travel

expenses to the lowest possible level. Incidental expenses and other expense found

to be very low. The study helps to understand the importance of preparing family

budget. The study revealed that good expenditure was surprisingly high.
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